GFT Technologies SE: Quirin Recommends Buy Despite Revised Guidance

On July 23, GFT Technologies SE reported its preliminary H1 2025 results and revised its full-year guidance. The company saw a revenue increase of 2.8% year-on-year, buoyed by strong performance in the Americas and APAC regions, particularly in Brazil, the USA, Canada, and Colombia. Growth was also noted in the Insurance sector and through the expansion of the GenAI product Wynxx. However, challenges such as adverse currency impacts and weak performance in Europe, especially the UK, resulted in decreased earnings before taxes (EBT) margins from 7.0% to 4.3%.

Quirin Privatbank lowered its target price for GFT from EUR 38 to EUR 32, citing FX challenges and necessary restructuring in the UK. The bank continues to maintain a Buy recommendation, emphasizing the long-term growth potential supported by AI initiatives and high-value service expansions. Despite immediate pressures, GFT's mid-term goals remain unaffected, offering cautious optimism for investors.